Technology experts warn that a global memory chip shortage caused by tech giants is leading to soaring prices of many consumer electronic products.
“All of these AI data centers that support all of these AI tools, require massive amounts of RAM and they’re basically consuming it right now,” said Mike Agerbo of GetConnected Media.
Memory chips or RAM (Random Access Memory) are not widely available throughout the world. RAM allows your computer to access data quickly and efficiently; however, large technology companies, including Google, Microsoft, and Meta purchase global supplies to support their AI centers.
This leads to less RAM for the traditional electronics market. Given these shortages, industry experts predict prices of many consumer electronics products such as laptops, tablets and even smartphones will increase by 20 percent or more.
“I think we’re going to see rapid price increases over the next 12 to 24 months minimum,” Dwight Dubowits of North Vancouver’s Concept Computers told Consumer Matters.
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Dubowits has been in the computer business for more than 40 years and says the RAM shortage is causing major changes in the industry.
“I think the market for $600 laptops and cheap desktops is pretty much gone now,” he said.
“The entry level is in the $800-$900 range. We estimate it will cost $1,200 or $1,300 just to get a basic function, reasonable quality laptop computer.”
Dubowits also said some local dealers have been forced to reduce costs by offering systems with less RAM. “Consumers should ensure that the system is truly upgradeable,” Dubowits said. “Many systems, especially laptops, have limited or no capacity to add more RAM post-purchase.”
This shortage has also had a devastating impact on the gaming industry. Toronto’s GamerTech makes dedicated gaming desktop computers and says it uses four times as much RAM in its computers.
“Essentially, the entire cost of building a computer has increased so much that we have to cover that cost for the actual selling price,” said Niam Radia of GamerTech Toronto. “This may be the new normal for RAM pricing and PC component pricing overall.”
Three major companies produce and control most of the world’s memory chips and experts predict this shortage will continue until 2027.
“I would recommend buying a computing device now. If you’re thinking about it in the next six months, I would buy it now because I just see the price basically going up,” Agerbo said.
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